Living insurance

Living Insurance (also often referred to as trauma insurance) provides a lump sum payment if the insured person suffers from one of the specified medical events listed in the BT Protection Plans PDS such as cancer, a heart attack or stroke. The payment can help the insured person meet their medical expenses and other lifestyle adjustment costs.

Who can benefit from this type of cover?

This type of insurance may help with major expenses following the insured person suffering a specified medical event and also help provide financial peace of mind during recovery. The benefit can help provide the insured person with assistance in relation to the following:

The time needed to recover may be easier knowing financial stress may have been alleviated throughout that period

Obtaining the best medical treatment available

The option to adapt their home to their needs, and

The opportunity to invest in an alternative income source.

What options are available under this type of cover?

Living Insurance is available under a Standalone Living policy, as an additional benefit on a Term Life policy or as a seperate policy through FLexible Linking Plus to a Term Life Superannuation policy. Two levels of Living Insurance available:

Living Benefit – This is the more basic level, in terms of the number of medical events that are covered. The specified medical events covered under this level of benefit are available under every Living Insurance policy.

Living Benefit Plus – This benefit covers a more comprehensive list of specified medical events. The comprehensive list is in addition to the specified medical events covered under the Living Benefit.

Specified medical events

The insured will receive a Living Benefit, Living Benefit Plus or Advancement Benefit if the insured person suffers a specified medical event listed in the relevant table on pages 28 and 29 of the BT Protection Plans PDS. Prior to a benefit payment the insured must provide medical evidence to support the claim by a doctor approved by us. Some of the categories of specified medical events include:

Cancers

Heart disorders

Nervous system disorders

Accidents which result in a coma, major head trauma, paralysis or severe burns

Body organ disorders

Blood disorders

What benefits are included in this type of cover?

Living Insurance Death Benefit: Pays a benefit of $10,000 if the insured person suffers a specified medical event before the policy ends and subsequently dies within 14 days.^

What are optional add-on benefits under this type of cover?

Business Cover Benefit: This benefit is available for policies taken out for business purposes. It allows the insured person to increase their cover if a specified event occurs, to help match the growth of their business without the need for additional medical evidence.

Living Reinstatement Benefit: This benefit allows the insured person to reinstate the Living Benefit twelve months after a Living Benefit cliam by the amount of the Living Benefit that was paid.

Double Living Benefit: This benefit allows the insured person to reinstate the Death Benefit after the insured person suffers a specified medical event, by the amount of the Living Benefit that was paid. In addition, premiums payable on the reinstated amount of the Death Benefit will be waived for the life of the policy.

What are some of the ways this type of insurance may be structured and what are some of the tax benefits of how it is structured?

Living Insurance can be held outside of superannuation only. A policy owner can be the insured person, another individual, a trust, or a business entity. We allow up to five policy owners on Standalone Living Insurance policies. Each policy owner jointly owns the policy.

Premiums are not generally tax deductible but it will depend on the specific circumstances of the policy taken out, such as whether it’s for a business. Any received benefits will generally not be treated as assessable for tax purposes if received by the insured person.

What are some of the features of BT Protection Plans?

All BT Protection Plans provide the following features, to ensure that your client is receiving the most value out of their policy:

CPI increases;

Guaranteed renewable provided premiums are paid when due;

Guaranteed upgrades automatically, provided the upgrade does not result in an increase in premium.

Loadings, exclusions or special conditions will continue to apply;

Loyalty benefit after a policy has been held for 3 years;

Multi-Policy discount on the premium applicable to the insured person;

Wrap and Platform Super discount on premiums when benefit premiums are paid through a Wrap or Platform Super account;

Premium Holiday if a policy has been in force and premiums paid for 6 months, we will allow the insured person to suspend their policy for up to 12 months in certain circumstances of financial hardship ; and

The information shown on this site is general information only, it does not constitute any recommendation or advice; it has been prepared without taking into account your personal objectives, financial situation or needs and you should consider its appropriateness with regard to these factors before acting on it. Any taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and our interpretation. Your individual situation may differ and you should seek independent professional tax advice. You should also consider obtaining personalised advice from a professional financial adviser before making any financial decisions in relation to the matters discussed hereto.